According to the proposed regulations, the government estimates asbestos was responsible for approximately 1,900 lung cancer cases and 430 mesothelioma cases in Canada in 2011. A single case of lung cancer or mesothelioma costs Canada's health system more than $1 million, the government says.

"By launching these new, tougher rules to stop the manufacture, import, use and sale of asbestos, we are following through on our promises to protect all Canadians from exposure to this toxic substance," said Environment and Climate Change Minister Catherine McKenna.

Asbestos was declared a human carcinogen by the World Health Organization's International Agency for Research on Cancer more than 30 years ago.

But up until 2011, Canada remained a major exporter of asbestos.

Kathleen Ruff, a longtime campaigner for a comprehensive asbestos ban, commended the government for moving ahead with new regulations, but said even more needs to be done.

Ruff is pushing for a national registry of asbestos-containing buildings, as well as national standards for asbestos removal.

"Initiate a national strategy to inform Canadians of the continuing hazards posed by asbestos in buildings and infrastructure and ... launch a national campaign to provide information and assistance to asbestos victims and their families," Ruff urged the government.

The newly proposed regulations include some exemptions, including an allowance for the cleanup of millions of tonnes of asbestos residue around former mines to make way for for redevelopment of the sites.

According to Ruff, the exemption risks exposing workers in Quebec to asbestos levels "10 times above the limit set by the Canadian government."

Provinces must act: CLC

"What we've seen so far, we're quite pleased," said Hassan Yussuff, president of the Canadian Labour Congress.

Yussuff said now the provinces need to step up by introducing new asbestos rules governing asbestos removal from buildings.

"I'm hoping this federal initiative will spur the provinces to do more, because we've got far more to do at the provincial level now with the federal government finally getting onside to banning asbestos."

The government said the ban will have an impact on industries including cement pipe manufacturers and automotive businesses that import asbestos-containing parts such as brake pads.